NY Attorney General Demands Tougher Rules for Crypto Bills

In a Letter sent on July 1said the current versions Stable act and ingenious law are not strong enough to protect people who use or invest in these digital assets.

James said accounts needed a clearer rules to stop anonymous transactions. She warned that, without appropriate checks, the stables could be used for illegal activities such as fraud or money laundering.

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One of her suggestions is that Stabblecoin Owners receive the same type of insurance protection that banks offer through the Federal Deposit Insurance Insurance Corporation (FDIC). This would help protect users if the company behind Stabilecoin get out of work.

James also recommended that Companies behind Stablecoin should follow the same rules as banks. Since these companies hold people money and promise to retain its value, James noted that they should be treated as financial institutions.

This would include fulfilling certain standards to prevent damage if any of them fails.

The second point raised in the letter was a possible impact on small, local banks. James said Stablecoins Could create an unfair advantage over the banks in the communitywho are already losing soil in many areas.

He wants legislators to consider how to protect these banks as new financial technology.

Recently, a group of American cryptocurrency organizations asked the legislators to revise the Claus Act. What did they say? Read the whole story.